Plan Administration

The 7 Habits of Highly Effective Retirement Plan Sponsors

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Oct 21, 2026 3:10 PM
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blogue retraite octobre-1

In 1989, Stephen Covey published The 7 Habits of Highly Effective People, a book built on a simple idea: the best results come from repeated behaviors and sustained effort. This principle applies to getting in shape or learning a new language. Why would it not also apply to managing a retirement savings plan?

In this article, we present seven habits that can help plan sponsors manage their plans more effectively and help participants better appreciate their value.

1. Remind Employees What Makes a Group Plan Different

For employers, the value of offering a retirement savings plan is well established, and the investment is significant. It is an important tool for attraction and retention. For employees, however, the value is not always as obvious or fully appreciated.

It is therefore essential to regularly highlight the plan’s key advantages: employer contributions (where applicable), lower management fees thanks to the purchasing power of the group, payroll deduction contributions, and access to institutional investment options. Your partners, namely your advisor and/or provider, can help you develop messaging tailored to your workforce. Then, repeat it often.

2. Simplify Investment Options 

Have you ever wanted to try a new breakfast cereal only to return to your usual brand after facing 30 different choices on the grocery store shelf? It is a well-known phenomenon: too many options can hinder decision-making and create inertia.

The same principle applies to retirement savings. Offering a large number of investment funds may seem attractive, but it can actually discourage some employees and even reduce participation in a voluntary plan because of the complexity.

Define your plan objectives based on your workforce demographics and offer a reasonable number of options. A few funds covering the main asset classes, combined with a target-date option that automatically adjusts according to retirement horizon, can meet the needs of both participants who want to manage their own investments and those who prefer a turnkey solution.

3. Train Your Human Resources Team 

Participants in retirement savings plans can, of course, contact the plan provider directly when they have questions. However, HR staff (sometimes only one person in smaller organizations) remain the primary and most trusted point of contact for employees.

Do not hesitate to request periodic support to train your HR team. The objective is not for HR to have all the answers, but rather to understand the plan’s features and advantages as well as the tools available to participants. This will allow them to better communicate the plan’s value to current and prospective employees.

4. Make Good Use of Recruitment and Onboarding Processes

You never get a second chance to make a first impression. Recruitment and hiring are therefore key opportunities to showcase the retirement plan as part of your total compensation offering.

Those responsible for recruitment should understand the plan’s key advantages so they can articulate its value during discussions with candidates. Without going into excessive detail, a few simple and compelling messages can help differentiate your organization. Once again, this highlights the importance of HR training.

Then, once the employee is hired, choose the right moment to discuss the retirement savings plan. Rather than overwhelming new hires on their first day, when they are already absorbing a great deal of information, waiting a few days may help capture their attention more effectively. Otherwise, the retirement plan brochure may end up in the recycling bin… and employees may never enrol.

5. Communicate Regularly

The most successful plan sponsors are those who continually sprinkle retirement plan information throughout the year. A few minutes during a quarterly employee meeting, a mention in the HR newsletter, periodic group sessions, or a reminder during annual salary reviews: by discussing retirement savings regularly, you increase the likelihood of reaching employees when the topic is most relevant to them.

6. Find Ambassadors

HR does not have to be the sole voice promoting a retirement savings plan. We know that when leadership reinforces a message within an organization, the topic generally carries greater weight. It can be valuable to enlist ambassadors so that others help communicate the message and add credibility to it.

When properly prepared and supported, these individuals become valuable allies whose enthusiasm can benefit everyone. Whether it is a plant manager, a senior executive, or a trusted employee, this is often a winning strategy.

7. Measure to Improve

Which offices in our company have the highest participation or contribution rates? Why does Plant X have an 80% participation rate while Plant Y has only 40%? Which age groups contribute the most?

Working with your advisor and provider, you can analyze data to better understand your plan’s trends and take action where needed, whether through plan design improvements or enhanced communications. This exercise should be conducted periodically. Making decisions based on concrete data rather than impressions contributes to sound plan governance and, most importantly, helps improve outcomes for participants.

 

***

You will notice that these seven habits do not require significant financial investment. They enable you to maximize the real value of what you offer through a disciplined, pragmatic, and results-oriented approach. The team at AGA Benefit Solutions can support you in implementing these habits and many other measures designed to optimize the design, administration, and governance of your retirement savings plan.

 
Sophie Séguin, Group Retirement and Annuity Plan Advisor
With over 25 years of experience in financial services, including two decades as the co-owner of an independent retirement consulting firm, Sophie Séguin has developed extensive expertise in group retirement and savings plans. She has advised organizations of all sizes on retirement plan design, governance, investments and member engagement, helping employers optimize their programs through practical, strategic, and results-oriented solutions. Today, as Director, Group Retirement, she continues to support clients in enhancing the value and effectiveness of their retirement programs. She holds a degree in actuarial science from Université du Québec à Montréal and an Executive MBA from Concordia University's John Molson School of Business.
Infolettre

The 7 Habits of Highly Effective Retirement Plan Sponsors

blogue retraite octobre-1

In 1989, Stephen Covey published The 7 Habits of Highly Effective People, a book built on a simple idea: the best results come from repeated behaviors and sustained effort. This principle applies to getting in shape or learning a new language. Why would it not also apply to managing a retirement savings plan?

In this article, we present seven habits that can help plan sponsors manage their plans more effectively and help participants better appreciate their value.

1. Remind Employees What Makes a Group Plan Different

For employers, the value of offering a retirement savings plan is well established, and the investment is significant. It is an important tool for attraction and retention. For employees, however, the value is not always as obvious or fully appreciated.

It is therefore essential to regularly highlight the plan’s key advantages: employer contributions (where applicable), lower management fees thanks to the purchasing power of the group, payroll deduction contributions, and access to institutional investment options. Your partners, namely your advisor and/or provider, can help you develop messaging tailored to your workforce. Then, repeat it often.

2. Simplify Investment Options 

Have you ever wanted to try a new breakfast cereal only to return to your usual brand after facing 30 different choices on the grocery store shelf? It is a well-known phenomenon: too many options can hinder decision-making and create inertia.

The same principle applies to retirement savings. Offering a large number of investment funds may seem attractive, but it can actually discourage some employees and even reduce participation in a voluntary plan because of the complexity.

Define your plan objectives based on your workforce demographics and offer a reasonable number of options. A few funds covering the main asset classes, combined with a target-date option that automatically adjusts according to retirement horizon, can meet the needs of both participants who want to manage their own investments and those who prefer a turnkey solution.

3. Train Your Human Resources Team 

Participants in retirement savings plans can, of course, contact the plan provider directly when they have questions. However, HR staff (sometimes only one person in smaller organizations) remain the primary and most trusted point of contact for employees.

Do not hesitate to request periodic support to train your HR team. The objective is not for HR to have all the answers, but rather to understand the plan’s features and advantages as well as the tools available to participants. This will allow them to better communicate the plan’s value to current and prospective employees.

4. Make Good Use of Recruitment and Onboarding Processes

You never get a second chance to make a first impression. Recruitment and hiring are therefore key opportunities to showcase the retirement plan as part of your total compensation offering.

Those responsible for recruitment should understand the plan’s key advantages so they can articulate its value during discussions with candidates. Without going into excessive detail, a few simple and compelling messages can help differentiate your organization. Once again, this highlights the importance of HR training.

Then, once the employee is hired, choose the right moment to discuss the retirement savings plan. Rather than overwhelming new hires on their first day, when they are already absorbing a great deal of information, waiting a few days may help capture their attention more effectively. Otherwise, the retirement plan brochure may end up in the recycling bin… and employees may never enrol.

5. Communicate Regularly

The most successful plan sponsors are those who continually sprinkle retirement plan information throughout the year. A few minutes during a quarterly employee meeting, a mention in the HR newsletter, periodic group sessions, or a reminder during annual salary reviews: by discussing retirement savings regularly, you increase the likelihood of reaching employees when the topic is most relevant to them.

6. Find Ambassadors

HR does not have to be the sole voice promoting a retirement savings plan. We know that when leadership reinforces a message within an organization, the topic generally carries greater weight. It can be valuable to enlist ambassadors so that others help communicate the message and add credibility to it.

When properly prepared and supported, these individuals become valuable allies whose enthusiasm can benefit everyone. Whether it is a plant manager, a senior executive, or a trusted employee, this is often a winning strategy.

7. Measure to Improve

Which offices in our company have the highest participation or contribution rates? Why does Plant X have an 80% participation rate while Plant Y has only 40%? Which age groups contribute the most?

Working with your advisor and provider, you can analyze data to better understand your plan’s trends and take action where needed, whether through plan design improvements or enhanced communications. This exercise should be conducted periodically. Making decisions based on concrete data rather than impressions contributes to sound plan governance and, most importantly, helps improve outcomes for participants.

 

***

You will notice that these seven habits do not require significant financial investment. They enable you to maximize the real value of what you offer through a disciplined, pragmatic, and results-oriented approach. The team at AGA Benefit Solutions can support you in implementing these habits and many other measures designed to optimize the design, administration, and governance of your retirement savings plan.